NEW YORK, May 25, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Accretive Health, Inc. ("Accretive Health" or the "Company") (NYSE: AH).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Accretive Health had failed to provide appropriate safeguards to prevent the misuse or disclosure of protected health information; (2) the Company had failed to keep all protected health information strictly confidential; and (3) Accretive Health was unable develop, implement, maintain and use appropriate technical and physical safeguards to preserve the integrity, confidentiality and availability of protected health information and to prevent non-permitted use or disclosure of the information.
On March 29, 2012, Accretive Health announced that in response to a lawsuit filed by Minnesota's Attorney General, the Company had agreed to no longer collect debts on behalf of Fairview Health Services ("Fairview") and would transition management of those operations to Fairview. Accretive Health further announced that it expected this change to negatively impact its fiscal year 2012 revenue by $62 million to $68 million. Then, on April 24, 2012, the Minnesota Attorney General released a report that highlighted aggressive practices used by Accretive Health, including demanding payment from people seeking care in emergency rooms, cancer wards and delivery rooms. As a result of this news, Accretive Health's stock plummeted $7.63 per share to close at $10.86 per share on April 25, 2012, a one-day decline of 41%. As a result of this news, the Company's stock plummeted $7.63 per share to close at $10.86 per share on April 25, 2012, a one-day decline of 41% on high volume.
Take Action If you purchased Accretive Health securities between March 2, 2011 and April 24, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/AH. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Accretive Health's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Francis McConville, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330